Berlin  - German retail sales ended two months of decline to post an increase in July, the nation's statistics office said Tuesday.

Adjusted for inflation and seasonal swings and excluding car sales, German retail sales edged up month on month by 0.7 per cent in July after slumping 1.3 per cent in June ands 1 per cent in May.

The rise in July should add to expectations of economic growth in Europe's biggest economy gaining ground in the buildup to the end of the year.

The latest retail sales data followed a survey released last month pointing to rising German consumer confidence on the back of dwindling inflation and signs that the labour market was turning in a better than forecast performance. (dpa)